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Before you learn more about what term life insurance is, it’s helpful to understand the basics of life insurance. If you’re a life insurance policyholder, you pay a fixed monthly rate, and your beneficiaries are guaranteed to receive a monetary benefit if something should happen to you within a predetermined period of time. People who can benefit from life insurance include:
There are two types of life insurance, whole and term, with different structures and benefits. To learn about term life insurance, it helps to learn a little bit about whole life, too.
What the difference between whole and term life insurance?
Great question, glad you asked! Whole life insurance covers you for your entire life (and builds cash value along the way). The main appeal of whole life insurance is that your beneficiaries are guaranteed to receive a benefit. However, not many people need, or want, to be insured for their entire lives, so whole life isn’t for everyone.
Term life insurance covers you for a predetermined amount of time, be it 10 years, 20 years, or more. You can choose the length of time that works best for you and potentially renew after your term ends. Term life insurance is a good fit for most people because it protects your family during the time they need it most and ends when it’s no longer necessary.
What are the benefits of term life insurance?
Term life insurance protects against the worst-case scenario: when a person dies suddenly or unexpectedly. If you’re insured, your family would receive a monetary benefit that helps replace your income (among other things) and helps them stay financially secure.
The right length for your policy depends on your needs. If you have children, you can choose a term that would extend through when they’re in college and when they enter adulthood. If you’re supporting your partner financially for now but not forever, you can choose a shorter term. Term life insurance is customizable, so you can select the term length that works for you and potentially renew the policy at the end of the term if you’d like.
You can’t predict the future, but life insurance can help you be prepared. To learn more about term life insurance and find the right policy for your family, look to the Gerber Life Term Life Plan. Affordable protection starts at around $8 a month,* and Gerber Life makes it simple to get the life insurance protection you need. Learn more about the benefits of term life insurance by tapping the button below.
*Disclaimer: Policy for an 18- to 32-year-old female for 15-year term/25k is $8.76 a month.
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